AIG 2011 Annual Report Download - page 366

American International Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(b) Includes investments in companies in emerging and developed markets.
(c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment
grade corporate bonds.
(d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade.
(e) Comprised primarily of investments that are guaranteed by a U.S. government agency.
(f) Includes funds comprised of macro, event driven, long/short equity, and controlled risk hedge fund strategies and a separately managed
controlled risk strategy.
(g) Includes funds that are diverse by geography, investment strategy, and sector.
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated
with investing in these securities. Based on AIG’s investment strategy, AIG has no significant concentrations of
risks.
The U.S. pension plan holds a group annuity contract with US Life, an AIG subsidiary, which totaled
$31 million and $32 million at December 31, 2011 and 2010, respectively.
The non-U.S. pension plans held an insurance contract with AIG Star, a former AIG subsidiary, which totaled
$64 million at December 31, 2010.
Changes in Level 3 fair value measurements
The following table presents changes in AIG’s non-U.S. and U.S. Level 3 plan assets measured at fair value:
Changes in
Unrealized
Net Realized Gains (Losses)
Balance and on Instruments
At December 31, 2011 Beginning Unrealized Transfers Transfers Balance at Held at
(in millions) of year Gains (Losses) Purchases Sales Issuances Settlements In Out End of year End of year
Non-U.S. Plan Assets:
Other fixed income securities $ -$ -$ 1$-$ -$ -$-$-$ 1$ -
Insurance contracts 34 3 2 - - - - - 39 -
Total $ 34$ 3$ 3$ -$ -$ -$ -$ -$ 40$ -
U.S. Plan Assets:
Fixed maturity
U.S. investment grade $ 1$ -$ -$-$ -$ -$-$-$ 1$ -
U.S. and international high yield -----(1)1--1
Mortgage and other asset-backed
securities 80 1 34 (79) - (1) 4 (3) 36 13
Private equity 209 5 30 (20) - (1) - - 223 (23)
Total $ 290 $ 6 $ 64 $ (99) $ - $ (3) $ 5 $ (3) $ 260 $ (9)
352 AIG 2011 Form 10-K